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The collaboration between Persatuan Penyedia Infrastruktur Telekomunikasi Malaysia (PPIT) and Indonesia’s Asosasi Pengembang Infrastruktur dan Menara Telekomunikasi (ASPIMTEL) signals a significant advancement in addressing the digital infrastructure challenges faced by both countries.
As telecommunications infrastructure providers, PPIT and ASPIMTEL have signed a memorandum of understanding to bolster cooperation between their respective markets, specifically focusing on densifying 4G digital infrastructure and deploying new 5G networks.
An industry trend analysis report highlighted the potential impact of this partnership on expediting the development of 5G infrastructure across Malaysia and Indonesia. The report noted a previously bearish outlook on capital expenditure for 5G rollouts in Indonesia, with domestic mobile network operators (MNOs) seeking incentives from the national telecoms regulator to accelerate adoption.
Challenges such as high rollout costs due to complex geographies and a shortage of the latest 5G semiconductors have hindered progress in Indonesia. However, the collaboration between PPIT and ASPIMTEL offers a promising solution to mitigate these obstacles.
Both Malaysian and Indonesian MNOs view 5G as a means to revitalise average revenue per user (ARPU) figures amid evolving consumer demands. While the partnership primarily focuses on upgrading and expanding 4G infrastructure, experts anticipate that the substantial subscriber base forecasted for 4G technology – 296 million in Indonesia and 37.4 million in Malaysia by 2025 – may create some resistance to transitioning to 5G.
Nevertheless, it is believed that the partnership’s emphasis on infrastructure enhancement could lead to more competitive pricing for 5G packages, thus driving greater consumer adoption rates. Despite expectations for reduced prices, significant price cuts are not anticipated, as operators aim to leverage 5G to boost ARPU figures.
Moreover, while concerns about affordability persist, the adoption of 5G is expected to be concentrated in urban centres where tech-savvy consumers demand high-speed connectivity for latency-sensitive applications like gaming and streaming.
Looking ahead, a substantial growth in 5G subscribers for both Malaysia and Indonesia is projected. By 2032, Malaysia is estimated to have approximately 34 million 5G subscribers, while Indonesia is expected to have around 197.2 million, representing 59.4% and 54.4% of total mobile subscribers, respectively. These assessments indicate a healthy compound annual growth rate of 31.3% for Malaysia and 39.4% for Indonesia from 2023 to 2032.
Last year, PPIT and ASPIMTEL signed a groundbreaking MoU to advance digital cooperation, marking the first collaborative effort of its kind between Malaysia and Indonesia and underscoring their joint commitment to fostering digital progress and improving regional connectivity.
This partnership demonstrates a commitment to sharing expertise in technology roadmaps, including 4G densification and deploying 5G networks, along with innovative designs and processes for telecom infrastructure. Additionally, discussions will cover rural connectivity and other vital aspects to enhance telecommunications infrastructure in both nations.
PPIT and ASPIMTEL aim to strengthen their countries’ commitments to sharing innovative knowledge in the telecom sector. The MoU fosters enhanced cooperation, setting a precedent for future collaborations aimed at advancing digital inclusion and connectivity across Malaysia and Indonesia. Through this alliance, both nations leverage strengths to address common challenges and drive sustainable telecom development.
The MoU signing signifies a major milestone in fostering regional cooperation in telecom infrastructure. PPIT and ASPIMTEL are set to facilitate cross-country knowledge sharing, fostering a collaborative environment for digital innovation. This partnership highlights Malaysia and Indonesia’s joint commitment to digital advancement and connectivity in the region.
The PPIT-ASPIMTEL partnership showcases the collaborative effort needed to tackle digital infrastructure challenges in emerging markets. By combining resources, they can expedite 5G deployment, fostering economic growth and innovation
As they navigate the transition to next-generation connectivity, policymakers, industry stakeholders, and consumers must work together to ensure that the benefits of 5G technology are accessible to all segments of society.
